Federal funding freeze to Daycares now expanded to all 50 states

LINCOLN, Neb. (KLKN) – The decision to freeze funding to daycare centers across all 50 states came out one day before most daycare centers and federal agencies close their offices due to the holiday.

Many organizations acknowledge the difficulty the timing creates as they attempt to have their questions answered and to gain clarity.

Travis Manley is the president at Foundations Nebraska, a Lincoln day care. He says the news that funding for all daycares would be frozen came at a terrible time.

“The timing of the news over the holiday period has slowed the flow of confirmed information,” said Manley. “There has not been sufficient guidance specific to Nebraska.”

The halt is being applied to money from the Child Care and Development Fund, which is allocated to states, territories, and tribes to help low-income families access child care.

The Trump administration has made it clear that this move is a direct consequence of alleged fraudulent schemes originating in Minnesota.

The Deputy Secretary of Health and Human Services, Jim O’Neill, and the Assistant Secretary for Children and Families, Alex Adams, posted a video explaining the purpose of the freeze.

Both say that it is meant to reinforce nationwide standards.

“Let me be clear, ACF expects every state to uphold the highest standards of oversight, monitoring, and accessibility for federal dollars,” said Adams.

Manley said the Nebraska Department of Health and Human Services is “usually quick to provide guidance,” but on the first day of the year, their offices were closed.

Groups like Lincoln Littles and First Five Nebraska also serve as resources for local daycares.

First Five Nebraska spokesman, Chris Triebsch, said, “We are already hearing from childcare programs in Nebraska concerned about what this may mean for their programs that serve children and families across the state of Nebraska.”

The executive director of Lincoln Littles, Suzanne Schneider, says, “It’s as if we are hanging on the edge,” making it clear that “Any disruption to childcare can be detrimental not only to childcare programs, but to families.”

As of Thursday, there is no clear timeline for when the funds will be released, but the Department of Health and Human Services says they will be released once states demonstrate they are being spent appropriately.